Illegal cigarettes: Who pays the price?

It includes unauthorized products smuggled across borders, locally produced tax evaded products and counterfeits.

The danger of any illicit trade is that such products are manufactured and sold without any quality or other controls and often the proceeds of such trades finance the activities of criminal gangs presenting complex problems for the Government and the legitimate industry.

Research indicates that up to 660 billion cigarettes are traded illegally across the globe annually. That’s up to 12% of world consumption. It is estimated that globally Governments lose US$40 billion in revenue from unpaid taxes due to the illegal cigarette trade.

In 2014, an estimated 30 million illegal cigarette sticks were confiscated and destroyed in Sri Lanka, under the supervision of law enforcement authorities.